The move is likely to soften the prices of edible oils in the domestic market
The Department of Food and Public Distribution has imposed stock limits on edible oils and oilseeds for a period up to March 31, 2022. The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 has been issued with immediate effect i.e. from September 8, 2021. The future trading on mustard oil and oilseeds was suspended in NCDEX w.e.f October 8, 2021.
The Centre’s decision will soften the prices of edible oils in the domestic market, thereby, bringing great relief to consumers across the country. The high prices of edible oil in the international market has a substantial impact on domestic edible oil prices. Measures like rationalisation of import duty structure, launching of a web portal for self-disclosure of stocks held by various stakeholders etc. had already been taken.
In a consistent effort to further cool down the domestic prices of edible oils, the Centre has issued the order which was shared with all states. Under this order, the stock limit of all edible oils and oilseeds will be decided by the respective States Government/Union Territories Administration on the basis of available stock and consumption pattern of the State/Union Territory with the following exceptions:
(a) an exporter, being a refiner, miller, extractor, wholesaler or retailer or dealer, having importer-exporter code number issued by the Director-General of Foreign Trade if such exporter is able to demonstrate that the whole or part of his stock in respect of edible oils and edible oilseeds are meant for exports, to the extent of the stock meant for export.
(b) an importer, being a refiner, miller, extractor, wholesaler or retailer or dealer, if such importer is able to demonstrate that part of his stock in respect of edible oils and edible oilseeds are sourced from imports.
In case, the stocks held by respective legal entities are higher than the prescribed limits then they shall declare the same on the portal (https://evegoils.nic.in/EOSP/login) of the Department of Food & Public Distribution and bring it to the prescribed stock limits as decided by the State/UT administration where it is conducting its business, within 30 days of the issue of such notification by the said authorities.
